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Types of companies in Turkey
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18/05/2024
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Types of companies in Turkey
A foreign citizen who intends to open a business in Turkey must be in the position of an investor from an economic point of view. The company can be opened after completing all the required documents for opening a business. Foreigners in Turkey can open a company in a variety of fields. There are several types of companies in Turkey, according to the Commercial Code: • Joint stock company (Anonim) • Limited Liability Company (Limited) • Collective company (Kollektif) • Limited Liability Partnership (Komandit) • Cooperative (Kooperatif) The conditions of establishment, main characteristics and activities of these companies are regulated by the Turkish Commercial Code. The most common types of companies in Turkey are: Joint Stock Company and Limited Liability Company. Approximately 82% of all companies are limited liability companies, 13% of them are joint stock companies and 4% are cooperatives. Collective Company and Limited Liability Partnership is about 1%. When creating a company, foreign individuals and legal entities are subject to the same rules and laws as domestic investors. The trade register is maintained by 238 departments operating within theChamber of Commerce, under the supervision and control of the Ministry of Commerce. Organizational Requirements In order to open your own company, regardless of the type of activity, it is important to meet certain requirements. There are strict requirements for its name: • must indicate the type of activity of the enterprise; • must claim uniqueness (it is prohibited for the first three words at the beginning of the name to coincide with another company); • permission from the Council of Ministers is required to use the words “Turkey”, “Turkish”, “republican” and “national”; • words in a foreign language are possible in the name only if the Council of Founders includes nationals of other states; To begin with, you need at least 5000 TL for the authorized capital, which can be divided into shares, the nominal value of each must be from 25 TL. The law allows you to contribute a quarter of the minimum authorized capital during the first three months of the enterprise’s existence, the remaining amount must be paid before the end of the first year or up to three years maximum. The number of founders can be from 2 to 50 people, where their citizenship does not matter. Specifics of activity Turkish legislation provides for at least one director per company, that is, you can appoint two andmore. In this case, everyone will have the same powers. It is possible to appoint several directors with “joint signature power”. As a rule, directors are appointed upon establishment of the enterprise, but their appointment is possible at any time. They are removed from office after a corresponding decision of the Council of Founders. A foreigner will be able to receive a salary only after obtaining a work visa. As for liability, the company bears it in the amount of its authorized capital. Only if there are debts to the Turkish Republic, the issue is resolved differently. Even if the founder leaves the Council, he still remains responsible to the state, subject to the debt to it. But personal liability is not assigned to either the director or the founders, unless we are talking about fraudulent schemes. Company registration The process of registering a company is relatively short, provided that all requirements are met. It can be difficult for a foreigner to collect the necessary documents, since the list contains papers whose names are unfamiliar even to Turkish citizens. As a rule, registration lasts within a week. You will need to pay government agencies for registration from approximately 2500 to 4000 TL, the amount will depend on how muchAll documents will have to be translated into Turkish and certified by a notary. Another important factor is the size of the authorized capital. To go through the procedures with ease, you should use the services of lawyers and accountants, the cost of which depends on the quality of the specialist’s work and the volume of work. Documents included in the required package: • Translation of a foreign passport, certified by a notary. • The Turkish equivalent of the Taxpayer Identification Number is vergi numarasi. A foreign legal entity has the right to open a company, then you will need a registration certificate and an extract from the Unified State Register of Legal Entities. You also need to formalize a decision from the authorized body that it approves participation in the Turkish company. It also indicates who will officially represent the founder (in addition, you need to issue a power of attorney) The company's charter is signed personally by the founders or their official representatives. All this happens in a notary office with mandatory certification of signatures. After registration with the chamber of commerce, accounting books are prepared, followed by registration with the tax chamber. Following the tax audit of workplaces, you can go to the bank to open an account and order a company seal. The last stage is the preparation of receipt and expenditure orders, invoices, which you have the right to printOnly licensed printing house. Most often, these procedures are enough to get the company started. An exception would be a company that was created to work in areas where licensing or obtaining a permit is mandatory.
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